India: Iron ore fines exports resume post withdrawal of export duty

SteelMint's index for India's low-grade iron ore fines (Fe 57%) exports have improved following the export duty withdrawal by the Indian government last week. The index stood at $53/t FOB east coast on 24 November, 2022. The market heard three-four deals getting concluded by Odisha-based miners and traders. However, the price confirmation could not be received till the time of publishing this index assessment.

Portside trading activity was weak as China's COVID-19 cases rose. Negative steel mill margins have weaned mills away from portside buying.

Price indicators:

• No confirmed deal was reported in the current publishing window and hence given 0% weightage under T1 trade. Click here for methodology.
  
  
• SteelMint received four (04) indicative prices, bids and offers in the current publishing window out of which three (03) were considered for price calculation as T2 inputs and given 100% weightage.
  
  

The government has announced a significant revision in export duties on steel and steelmaking raw materials on 18 November. Exports of iron ore lumps and fines with less than 58% Fe content and iron ore pellets will be duty-free, compared to 50% and 45% duties imposed earlier.

After the Indian government removed export duties, several trading houses sent offers for Fe 52%-57% fines to steel mills that are due for loading end November to early December.

Low-grade fines export deals were concluded from India towards the end of last week. However, it seems buyers are now waiting for Australian miners to announce the discount which is expected next week.

Market highlights -

• Spot prices decrease by $3/t w-o-w: The spot price of benchmark iron ore (Fe 62%) fines decreased w-o-w to $95.20/t CFR China on 23 November as against $98.10/t a week ago. Seaborne iron ore prices fell in China as COVID-19 cases increased, potentially affecting market recovery.
  
  
• DCE iron ore futures decrease w-o-w: DCE iron ore futures' January contract closed at RMB 732/t ($102/t) on 24 November, down RMB 8/t ($1/t) compared with last week.
  
  
• Port inventories in China edge down: Iron ore inventory at major Chinese ports inched down to 135.45 mnt on 16 November compared to 136 mnt last week, as per SteelHome data.